Rapid Rescoring May Improve Credit Score
By S.E. Slack
Low credit scores aren’t always the result of poor credit. Multiple missed payments, foreclosures or repossessions can also impact a score.
A single error or a little too much debt on a credit card can bring down a person’s credit score, according to Carla Showalter, partner of Bulk Home Buyers. To improve their scores, she said, some people are seeking help from rapid rescoring companies.
Rapid rescoring, she said, is a method used by lenders or mortgage brokers to review credit and make suggestions designed to help raise credit scores. Special software is used to evaluate your credit report and determine whether any items can be changed quickly for a swift uptick in your credit score.
Paying down a credit card by $700 might, for example, increase a credit score by 30 points. That higher score could not only help a person qualify for a mortgage but save a prospective buyer a point or more on a home loan.
“Saving a point or more on your home loan could translate into a long-term savings of more than $40,000,”she said.